Quick Summary
Most Canadian mortgage lenders require 2 to 3 recent paystubs as part of your income verification package. Salaried borrowers typically need 2, while hourly and variable income earners often need 3. Paystubs confirm your current employer, gross and net income, year-to-date earnings, and payroll deductions. They are one piece of a larger picture that also includes your T4, a letter of employment, and in some cases a Notice of Assessment. Clean, complete, and consistent documentation leads to faster approvals.
Why Paystubs Matter When Applying for a Mortgage
Getting a mortgage in Canada means proving you can reliably service the debt. Income verification is one of the first hurdles in the underwriting process, and paystubs are typically the starting point. Unlike a T4, which tells a lender what you earned last year, paystubs show what is happening with your income right now.
When a mortgage lender or mortgage broker reviews your paystubs, they are not simply confirming a number. They are building a picture of your employment stability, income consistency, and your ability to meet your mortgage obligations over time. Any inconsistency between your paystubs and your other documents, such as your T4 or employment letter, will trigger questions and can delay your approval.
How Many Paystubs Do Lenders Actually Require?
The standard in Canada is 2 to 3 recent paystubs, and the exact number depends on how your income is structured.
For salaried borrowers, two paystubs are usually sufficient. Because your gross pay is fixed every period, two documents are enough to confirm your compensation is stable and consistent with what you have declared on your application.
For hourly workers, three paystubs are typically requested. Hours worked can vary from week to week, and lenders want to see enough data to assess what your earnings look like on average, not just in your best pay period. If your hours fluctuate significantly, lenders may also request your T4 documents from the past two years and calculate a 2-year average income rather than relying solely on recent paystubs.
Important: Recent means within the last 30 to 90 days in most cases. Applying with pay stubs that are not recent is one of the most common causes of delayed mortgage applications.
Paystub Requirements by Income Type
Salaried Income
Salaried employees receive a fixed amount each pay period regardless of hours worked. This is the most straightforward income type for lenders to verify.
What lenders typically request:
- 2 recent paystubs (within the last 60 days)
- Most recent T4
- Letter of employment confirming your role, start date, and annual salary
Because salary income does not fluctuate, year-to-date totals on your paystubs should align predictably with your declared annual income. A lender will cross-reference this against your T4 from the prior year. If there is a significant jump in income since last year, expect questions and be ready to provide documentation such as a promotion letter or updated employment contract.
Hourly Income
Hourly income is more complex because the number of hours worked can change week to week. Lenders approach this cautiously.
What lenders typically request:
- 3 recent paystubs
- T4 from the most recent tax year
- Potentially a 2-year income average if hours are inconsistent
If you recently increased your hours or moved from part-time to full-time, your paystubs may not yet reflect a full picture of your new earning rate. In that case, the lender may use a blended average or request a letter from your employer confirming the permanent change in hours.
Commission, Bonus, and Overtime Income
Variable income components such as sales commission, performance bonuses, or regular overtime are treated with extra scrutiny. A single strong pay period is not enough to qualify. Lenders look for a consistent track record before counting this income toward your borrowing capacity.
The standard approach lenders use for variable income:
- Calculate a 2-year average of commission or bonus income using your last two T4s
- Review multiple paystubs to confirm the pattern is ongoing
- Discount or exclude income that appears inconsistent or one-time
This means if you earned a large one-time bonus in a single year, it may not be fully counted. Lenders are conservative with variable income because it is not guaranteed to continue.
Paystubs Are One Piece of the Puzzle
Paystubs rarely stand alone in a mortgage application. They work alongside other documents to give lenders a complete picture of your financial situation.
The T4 Slip
A T4 slip is issued by the employer and confirms the income earned from the employer in the previous calendar year. Lenders compare the income shown in the T4 slip with the year-to-date income shown in the paystubs to ensure consistency. If the income in the paystubs is showing an increase or decrease of significant proportions from the previous year, the lender may want to know the reasons behind the change.
Letter of Employment
This letter confirms the borrower’s current employment situation, including the type of employment, whether it is permanent or contract, the start date, and the income or hourly wage rate. This letter is important if the borrower has recently changed jobs or has had a significant increase in income, as it bridges the gap between the current income situation and the income situation reflected in the previous year’s T4 slip.
Notice of Assessment (NOA)
Some financial institutions may ask for your CRA Notice of Assessment, especially when they are verifying your income claims or when your income profile is more complicated. However, for regular salaried employees, this may not be necessary unless you have other income sources or more complicated income issues.
Two-Year Income Average
For borrowers earning on an hourly basis or on a commission or bonus basis, financial institutions may compute the average income over two years. In this example, your income is $68,000 in one year and $74,000 in the following year. In this case, the lender may use $71,000 as your income level. Your pay stubs are used to verify that you are currently earning within this income range.
What If You Recently Changed Jobs or Are on Probation?
New job situations are one of the most common issues that complicate the mortgage application process. If you have recently started a new job, financial institutions may request documentation to prove that your job is stable before approving your mortgage.
If you are still in your probationary period, some lenders will decline to approve your application until probation is complete. Others may proceed if your employment letter confirms the role is permanent upon completion of probation and your income is otherwise strong.
If you have recently changed jobs but are still within the same field or industry, financial institutions are more likely to approve your application. However, if you have recently changed fields or industries, this may require more documentation and may have more stringent requirements.
What About Self-Employed Borrowers?
If you’re self-employed, paystubs don’t apply to your case. In the case of self-employed applicants, the lender will use the CRA Notice of Assessments, CRA Notice of Assessments, T1 General tax returns, business financial statements, and bank statements from the last 12 to 24 months.
As a self-employed applicant, the process is more difficult because the income reported on the T1 General Tax Return may not reflect the actual cash flow available for the mortgage payment. It is highly recommended that you use the services of a mortgage broker who is experienced in dealing with self-employed applicants.
How Paystubs Connect to the Mortgage Stress Test
As of January 2018, all federally regulated mortgage lenders in Canada have to use the OSFI mortgage stress test. This means that the income of the applicant has to qualify for the mortgage at an interest rate higher than the interest rate they’re being offered in the mortgage contract. The interest rate used in the test is the higher of the interest rate in the mortgage contract plus 2 percent or 5.25 percent.
Paystubs play an important role in the mortgage stress test because the income verified by the paystubs will be used in the test. If the income is less than what is anticipated, the amount of the mortgage will also decrease.
Common Mistakes When Submitting Paystubs
Small documentation errors can cause significant delays.
The following are the most common mistakes that mortgage brokers and lenders encounter from applicants:
- Providing only one paystub when the lender requires two or three paystubs
- Providing outdated paystubs that are more than 90 days old
- Redacting information like the employer name or deductions, which is suspicious
- Providing screenshots instead of PDFs or printed versions of the payroll (clear screenshots are sometimes acceptable)
- Paystubs without clear income totals for the year to date
- Not providing paystubs showing the current income rate after a raise or promotion
A standard paystub should have the employer name, pay period, gross income, deductions, net income, and year-to-date income totals. If anything is amiss, the process may stall until the problem is corrected.
Document Checklist for Mortgage Income Verification
- 2 to 3 recent paystubs (within last 60–90 days)
- Most recent T4
- Letter of employment confirming your current role and income
- Notice of Assessment (if required by the lender)
- T4’s for the last 2 years (if income is hourly or inconsistent)
- Employment contract or promotion letter if income recently changed
These documents help tell your story and allow you to secure the best mortgage approval possible.
Income Type Documentation Summary
| Income Type | Paystubs Required | Key Additional Documents | Underwriting Complexity |
|---|---|---|---|
| Salary | 2 recent | T4, Employment Letter | Low |
| Hourly | 3 recent | T4, 2-year average | Moderate |
| Commission / Bonus | 3 recent | T4 x2 years, 2-year average | Higher |
| Self-Employed | N/A | NOA, T1, Business financials | Highest |
Frequently Asked Questions
How many paystubs are required for a mortgage in Canada? Most mortgage lenders in Canada request 2-3 recent paystubs. Two are generally required for salaried income, while hourly earners or those with inconsistent pay require 3 or more. The goal is always to confirm income consistency rather than just a single pay figure.
Can I apply with only one paystub? Generally no. A single paystub does not provide enough information to confirm income stability. Most lenders require a minimum of two paystubs to verify that your income is consistent across pay periods.
Do I need a T4 if I am also providing paystubs? Yes. The T4 and your paystubs serve different purposes. Your T4 confirms what you earned in the prior tax year, while paystubs confirm your current income. Lenders compare both to identify any significant changes that might require explanation.
What if I just started a new job? A new job can complicate your application, especially if you are still within a probationary period. Lenders will typically want to see your employment letter, confirm your probation status, and may request several paystubs once they are available. Some lenders will decline until probation is officially completed.
Are digital paystubs and PDF paystubs acceptable? Yes. Most lenders accept official digital paystubs issued by your employer or payroll provider. They must be complete documents showing all pay details — screenshots or partial prints are generally not acceptable.
What if my income recently increased? An income increase due to a promotion or new role is generally a positive development, but lenders need documentation to support it. You should provide an updated employment letter or new contract showing the higher salary, along with paystubs that reflect the new rate. Without supporting documentation, the lender may use your previous income level from your T4.
I earn commission income. How will lenders calculate my qualifying income? Lenders will typically use a two-year average of your commission income based on your T4 slips. Your paystubs help confirm you are currently earning at or above that average. If you had one particularly strong year followed by a weaker one, the lender will average both, which could reduce your qualifying amount.
This article is for informational purposes only and does not constitute financial or mortgage advice. The requirements for a mortgage will vary depending on the lender and your individual circumstances. You should contact a licensed mortgage professional at LendToday.ca to discuss your specific circumstances.
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